“STORE posted new records in all key performance metrics in 2018,
including real estate investment activity, AFFO and AFFO per share. We
also delivered our fourth consecutive year of double-digit returns to
our stockholders, in part due to our fourth dividend increase in as many
years,” said Christopher Volk, Chief Executive Officer of STORE Capital.
“During the year, we acquired 418 properties for a total of
$1.63billion at sector leading average investment yields of 7.9%,
further diversifying our tenant base to 434 customers across the United
States. From a capital markets perspective, we strengthened our
financing flexibility and reduced our cost of capital with the
successful completion of our inaugural public unsecured note offering,
together with the first-ever AAA rated real estate master funding
issuance. In 2019, we look forward to building on these accomplishments
to achieve another year of record financial performance that contributes
to continued success for all of our stakeholders.”

Financial Results

Total Revenues

Total revenues were $146.7million for the fourth quarter of 2018, an
increase of 22.1% from $120.1million for the fourth quarter of 2017.

Total revenues for 2018 were $540.8million, an increase of 19.4% from
$452.8million for 2017. The increase was driven primarily by the growth
in the size of STORE Capital’s real estate investment portfolio, which
grew from $6.2billion in gross investment amount representing 1,921
property locations and 397 customers at December 31, 2017 to
$7.6billion in gross investment amount representing 2,255 property
locations and 434 customers at December 31, 2018.

Net Income

Net income was $56.6million, or $0.26 per basic and diluted share, for
the fourth quarter of 2018, an increase from $41.0million, or $0.21 per
basic and diluted share, for the fourth quarter of 2017. Net income for
the fourth quarter of 2018 includes an aggregate net gain on
dispositions of real estate of $14.7million as compared to $3.8million
for the same period in 2017.

Net income includes such items as gain or loss on dispositions of real
estate and provisions for impairment, which can vary from quarter to
quarter and impact net income and period-to-period comparisons.

Net income for the year ended December 31, 2018 was $217.0million, or
$1.06 per basic and diluted share, an increase of 33.9% from
$162.0million, or $0.90 per basic and diluted share, for 2017. Net
income for 2018 includes an aggregate net gain on dispositions of real
estate of $45.5million as compared to $39.6million for 2017. Net
income for 2018 included $9.9million of non-cash charges consisting of
a $2.1million charge to interest expense for the accelerated
amortization of deferred financing costs primarily related to the
$233.3million prepayment of STORE Master Funding notes in the fourth
quarter and an aggregate $7.8million of provisions for impairment. Net
income for 2017 included $20.0million of non-cash charges consisting of
a $4.6million charge to revenue related to the accelerated amortization
of lease incentives, a $2.0million charge to interest expense related
to the accelerated amortization of deferred financing costs associated
with STORE Master Funding prepayments in 2017 and an aggregate
$13.4million of provisions for impairment.

Adjusted Funds from Operations (AFFO)

AFFO increased 25.8% to $103.4million, or $0.48 per basic and diluted
share, for the fourth quarter of 2018, compared to AFFO of
$82.2million, or $0.43 per basic and diluted share, for the fourth
quarter of 2017.

AFFO for 2018 was $377.9million, or $1.85 per basic share and $1.84 per
diluted share, an increase of 23.5% from $306.1million, or $1.71 per
basic and diluted share, for 2017. The year-over-year increase in AFFO
was primarily driven by additional rental revenues and interest income
generated by the growth in the Company’s real estate investment
portfolio.

Dividend Information

As previously announced, STORE Capital declared a regular quarterly cash
dividend per common share of $0.33 for the fourth quarter of 2018. This
dividend, totaling $73.0million, was paid on January 15, 2019 to
stockholders of record on December 31, 2018. For the year ended December
31, 2018, the Company declared regular cash dividends per common share
aggregating $1.28 which included a 6.5% increase in the third quarter.

Real Estate Portfolio Highlights

Investment Activity

The Company originated $460.0million of gross investments representing
75 property locations during the fourth quarter of 2018, adding 13 net
new customers. These investments had a weighted average initial cap rate
of 8.0%. Total investment activity for the year was $1.63billion
representing 418 property locations with a weighted average initial cap
rate of 7.9%. The Company defines “initial cap rate” for property
acquisitions as the initial annual cash rent divided by the purchase
price of the property. STORE’s leases customarily have lease
escalations, most of which are tied to the consumer price index and
subject to a cap. For acquisitions made in 2018, the weighted average
annual lease escalation was 1.8%.

Disposition Activity

During the year ended December 31, 2018, the Company sold 80 properties
and recognized an aggregate net gain of $45.5million on the
dispositions; 25 of these 80 properties were sold in the fourth quarter
for an aggregate net gain of $14.7million. For the year ended December
31, 2018, proceeds from the dispositions of real estate aggregated
$251.4million as compared to an aggregate original investment amount of
$227.8million for the properties sold.

Portfolio

At December 31, 2018, STORE Capital’s real estate portfolio totaled
$7.6billion representing 2,255 property locations. Approximately 95% of
the portfolio represents commercial real estate properties subject to
long-term leases, 5% represents mortgage loans and direct financing
receivables primarily on commercial real estate buildings (located on
land the Company owns and leases to its customers) and a nominal amount
represents loans receivable secured by the tenants’ other assets. As of
December 31, 2018, the portfolio’s annualized base rent and interest
(based on rates in effect on December 31, 2018 for all lease and loan
contracts) totaled $614.5million as compared to $501.0million a year
ago. The weighted average non-cancelable remaining term of the leases at
December 31, 2018 was approximately 14years.

The Company's portfolio of real estate investments is highly diversified
across customers, brand names or business concepts, industries and
geography. The following table presents a summary of the portfolio.

Represents the percentage of our lease contracts that were
created by STORE or contain preferred contract terms such as
unit-level financial reporting, triple-net lease provisions and,
when applicable, master lease provisions.

(2)

Represents the weighted average annual escalation rate of the
entire portfolio as if all escalations occurred annually. For
escalations based on a formula including CPI, assumes the stated
fixed percentage in the contract or assumes 1.5% if no fixed
percentage is in the contract. For contracts with no escalations
remaining in the current lease term, assumes the escalation in the
extension term. Calculation excludes contracts representing less
than 0.2% of annualized base rent and interest where there are no
further escalations remaining in the current lease term and there
are no extension options.

(3)

The Company defines occupancy as a property being subject to a
lease or loan contract. As of December 31, 2018, eight of the
Company’s properties were vacant and not subject to a contract.

(4)

Represents the number of the Company’s investment locations
that have been closed by the tenant but remain subject to a lease.

(5)

Percentage of investment portfolio in multiple properties with
a single customer subject to master leases. Approximately 84% of
the investment portfolio involves multiple properties with a
single customer, whether or not subject to a master lease.

(6)

Represents the ratio of purchase price to replacement cost
(new) at acquisition.

(7)

STORE Capital calculates a unit’s FCCR generally as the ratio
of (i) the unit’s EBITDAR, less a standardized corporate overhead
expense based on estimated industry standards, to (ii) the unit’s
total fixed charges, which are its lease expense, interest expense
and scheduled principal payments on indebtedness. The 4-Wall
coverage ratio refers to a unit’s FCCR before taking into account
standardized corporate overhead expense. The weighted average unit
FCCR and 4-Wall coverage ratios were 2.6x and 3.2x, respectively.

(8)

Represents the percentage of the Company’s contracts that have
a STORE Score that is investment grade. The Company measures the
credit quality of its portfolio on a contract-by-contract basis
using the STORE Score, which is a proprietary risk measure
reflective of both the credit risk of the Company’s tenants and
the profitability of the operations at the properties. As of
December 31, 2018, STORE Capital’s tenants had a median tenant
credit profile of approximately ‘Ba2’ as measured by Moody's
Analytics RiskCalc rating scale. Considering the profitability of
the operations at each of its properties and STORE’s assessment of
the likelihood that each of the tenants will choose to continue to
operate at the properties in the event of their insolvency, the
credit quality of its contracts, or STORE Score, is enhanced to a
median of ‘Baa2’.

Capital Transactions

The Company established a $750million “at the market” equity
distribution program, or ATM Program, in November 2018, and terminated
its previous program. During the fourth quarter of 2018, the Company
sold an aggregate of approximately 9.2million common shares at a
weighted average share price of $29.57 and raised approximately
$268.1million in net proceeds after the payment of sales agents’
commissions and offering expenses. For the year ended December 31, 2018,
the Company sold approximately 27.1million common shares at a weighted
average share price of $27.79 and raised approximately $741.7million in
net proceeds after the payment of sales agents’ commissions and offering
expenses.

In October 2018, certain of the Company’s consolidated special purpose
entities issued the eighth series, Series 2018-1, of net-lease mortgage
notes under the Company’s STORE Master Funding debt program, separated
into four tranches as summarized below.

Class

Rating

Amount

(in millions)

Coupon Rate

Maturity Date

Class A-1

AAA

$

150.0

3.96

%

Oct. 2024

Class A-2

AAA

228.0

4.29

%

Oct. 2027

Class A-3

A+

50.0

4.40

%

Oct. 2024

Class A-4

A+

164.0

4.74

%

Oct. 2027

Total

$

592.0

The Series 2018-1 transaction marked the Company’s inaugural issuance of
AAA rated notes. The net proceeds from the issuance were primarily used
to pay down outstanding balances on the Company’s credit facility and to
prepay, without penalty, the STORE Master Funding Series 2013-1 Class
A-1 notes and the Series 2013-2 Class A-1 notes; these notes had an
aggregate outstanding principal balance of $233.3million at the time of
prepayment, were scheduled to mature in 2020 and bore interest rates of
4.16% and 4.37%, respectively.

In March 2018, the Company completed its first public debt offering,
issuing $350million in aggregate principal amount of its unsecured,
investment-grade rated 4.50% Senior Notes, due March 2028. The net
proceeds from the issuance were primarily used to pay down amounts
outstanding under the Company’s credit facility.

In February 2018, the Company expanded its unsecured revolving credit
facility from $500million to $600million and the accordion feature
from $300million to $800million for a total maximum borrowing capacity
of $1.4billion. The amended credit facility matures in February 2022
and includes two six-month extension options, subject to certain
conditions.

2019 Guidance

Affirming its 2019 guidance initially presented in November 2018, the
Company currently expects 2019 AFFO per share to be within a range of
$1.90 to $1.96, based on projected 2019 annual real estate acquisition
volume, net of projected property sales, of approximately $1.1billion.
This AFFO per share guidance equates to anticipated net income,
excluding gains or losses on sales of property, of $0.88 to $0.91 per
share, plus $0.96 to $0.98 per share of expected real estate
depreciation and amortization, plus approximately $0.06 to $0.07per
share related to noncash items. The midpoint of our AFFO per share
guidance is based on a weighted average initial cap rate on new
acquisitions of 7.85% and target leverage in the range of 5½ to 6 times
run-rate net debt to EBITDA. AFFO per share is sensitive to the timing
and amount of real estate acquisitions, property dispositions and
capital markets activities during the year, as well as to the spread
achieved between the lease rates on new acquisitions and the interest
rates on borrowings used to finance those acquisitions.

Conference Call and Webcast

A conference call and audio webcast with analysts and investors will be
held later today at 12:00 p.m. Eastern Time / 10:00 a.m. Scottsdale,
Arizona Time, to discuss fourth quarter and full year ended December 31,
2018 operating results and answer questions.

STORE Capital Corporation is an internally managed net-lease real estate
investment trust, or REIT, that is the leader in the acquisition,
investment and management of Single Tenant Operational Real Estate,
which is its target market and the inspiration for its name. STORE
Capital is one of the largest and fastest growing net-lease REITs and
owns a large, well-diversified portfolio that consists of investments in
2,255 property locations, substantially all of which are profit centers,
in 49 states. Additional information about STORE Capital can be found on
its website at www.storecapital.com.

Forward-Looking Statements

Certain statements contained in this press release that are not
historical facts contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, that are subject to the “safe harbor” created by those
sections. Forward-looking statements can be identified by the use of
words such as “estimate,” “anticipate,” “expect,” “believe,” “intend,”
“may,” “will,” “should,” “seek,” “approximate” or “plan,” or the
negative of these words and phrases or similar words or phrases.
Forward-looking statements, by their nature, involve estimates,
projections, goals, forecasts and assumptions and are subject to risks
and uncertainties that could cause actual results or outcomes to differ
materially from those expressed in the forward-looking statements. For
more information on risk factors for STORE Capital’s business, please
refer to the periodic reports the Company files with the Securities and
Exchange Commission from time to time. These forward-looking statements
herein speak only as of the date of this press release and should not be
relied upon as predictions of future events. STORE Capital expressly
disclaims any obligation or undertaking to update or revise any
forward-looking statements contained herein, to reflect any change in
STORE Capital’s expectations with regard thereto, or any other change in
events, conditions or circumstances on which any such statement is
based, except as required by law.

Non-GAAP Financial Measures

FFO and AFFO

STORE Capital’s reported results are presented in accordance with U.S.
generally accepted accounting principles, or GAAP. The Company also
discloses Funds from Operations, or FFO, and Adjusted Funds from
Operations, or AFFO, both of which are non-GAAP measures. Management
believes these two non-GAAP financial measures are useful to investors
because they are widely accepted industry measures used by analysts and
investors to compare the operating performance of REITs. FFO and AFFO do
not represent cash generated from operating activities and are not
necessarily indicative of cash available to fund cash requirements;
accordingly, they should not be considered alternatives to net income as
a performance measure or to cash flows from operations as reported on a
statement of cash flows as a liquidity measure and should be considered
in addition to, and not in lieu of, GAAP financial measures.

The Company computes FFO in accordance with the definition adopted by
the Board of Governors of the National Association of Real Estate
Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income,
excluding gains (or losses) from extraordinary items and sales of
depreciable property, real estate impairment losses, and depreciation
and amortization expense from real estate assets, including the pro rata
share of such adjustments of unconsolidated subsidiaries.

To derive AFFO, the Company modifies the NAREIT computation of FFO to
include other adjustments to GAAP net income related to certain non-cash
revenues and expenses that have no impact on the Company’s long-term
operating performance, such as straight-line rents, amortization of
deferred financing costs and stock-based compensation. In addition, in
deriving AFFO, the Company excludes certain other costs not related to
its ongoing operations, such as the amortization of lease-related
intangibles.

FFO is used by management, investors and analysts to facilitate
meaningful comparisons of operating performance between periods and
among the Company’s peers primarily because it excludes the effect of
real estate depreciation and amortization and net gains on sales, which
are based on historical costs and implicitly assume that the value of
real estate diminishes predictably over time, rather than fluctuating
based on existing market conditions. Management believes that AFFO
provides more useful information to investors and analysts because it
modifies FFO to exclude certain additional non-cash revenues and
expenses such as straight-line rents, including construction period rent
deferrals, and the amortization of deferred financing costs, stock-based
compensation and lease-related intangibles as such items may cause
short-term fluctuations in net income but have no impact on long-term
operating performance. The Company believes that these costs are not an
ongoing cost of the portfolio in place at the end of each reporting
period and, for these reasons, the portion expensed is added back when
computing AFFO. As a result, the Company believes AFFO to be a more
meaningful measurement of ongoing performance that allows for greater
performance comparability. Therefore, the Company discloses both FFO and
AFFO and reconciles them to the most appropriate GAAP performance
metric, which is net income. STORE Capital’s FFO and AFFO may not be
comparable to similarly titled measures employed by other companies.

For the three months ended December 31, 2018, includes $10,000 and
for the years ended December 31, 2018 and 2017, includes $130,000
and $5,000, respectively, of income tax expense associated with
gains recognized on the dispositions of certain properties.

(2)

For the three months ended December 31, 2018, includes $1.7 million
and for the years ended December 31, 2018 and 2017, includes $2.1
million and $2.0 million, respectively, of accelerated amortization
of deferred financing costs primarily related to the prepayment of
debt.

(3)

For the year ended December 31, 2017, includes a $4.6 million charge
related to accelerated amortization of lease incentives associated
with terminated lease contracts.

(4)

Under the two-class method, earnings attributable to unvested
restricted stock are deducted from earnings in the computation of
per share amounts where applicable.

STORE Capital Corporation

Investment Portfolio

December 31, 2018

Real Estate Portfolio Information

As of December 31, 2018, STORE Capital’s total investment in real estate
and loans approximated $7.6billion, representing investments in 2,255
property locations, substantially all of which are profit centers for
its customers. The Company’s real estate portfolio is highly
diversified. The following tables summarize the diversification of the
real estate portfolio based on the percentage of base rent and interest,
annualized based on rates in effect on December 31, 2018, for all
leases, loans and direct financing receivables in place as of that date.

Diversification by Customer

STORE Capital has a diverse customer base. At December 31, 2018, the
Company’s property locations were operated by 434 customers. The largest
single customer represented 2.7% of annualized base rent and interest
and the top ten customers totaled 18.1% of annualized base rent and
interest. The following table identifies STORE Capital’s ten largest
customers as of December 31, 2018:

Customer

% of Annualized Base Rent and
Interest

Number of Properties

AVF Parent, LLC (Art Van Furniture)

2.7

%

23

Mills Fleet Farm Group LLC

2.4

8

Bass Pro Group, LLC (Cabela’s)

2.2

9

American Multi-Cinema, Inc. (AMC/Carmike/Starplex)

1.7

14

Stratford School, Inc. (Elementary and middle schools)

1.6

17

Cadence Education, Inc. (Early childhood/elementary education)

1.6

32

Zips Holdings, LLC

1.6

42

US LBM Holdings, LLC (Building materials distribution)

1.5

46

CWGS Group, LLC (Camping World/Gander Outdoors)

1.5

19

Dufresne Spencer Group Holdings, LLC (Ashley Furniture HomeStore)

1.3

16

All other (424 customers)

81.9

2,029

Total

100.0

%

2,255

STORE Capital Corporation

Investment Portfolio

December 31, 2018

Diversification by Concept

STORE Capital’s customers operate their businesses under a wide range of
brand names or business concepts. Of the more than 600 concepts
represented in the Company’s investment portfolio as of December 31,
2018, the largest single concept represented 2.4% of annualized base
rent and interest and the top ten concepts totaled 16.0% of annualized
base rent and interest. The following table identifies the top ten
customer business concepts as of December 31, 2018:

Customer Business Concept

% of Annualized Base Rent and
Interest

Number of Properties

Fleet Farm

2.4

%

8

Ashley Furniture HomeStore

2.2

25

Cabela’s

2.0

8

Art Van Furniture

1.9

16

Zips Car Wash

1.6

42

Big R Stores

1.5

24

Stratford School

1.2

4

AMC Theaters

1.1

10

Popeyes Louisiana Kitchen

1.1

63

Applebee’s

1.0

35

All other (600 concepts)

84.0

2,020

Total

100.0

%

2,255

STORE Capital Corporation

Investment Portfolio

December 31, 2018

Diversification by Industry

The business concepts of STORE Capital’s customers are diversified
across more than 100 industries within the service, retail and
manufacturing sectors of the U.S. economy. The following table
summarizes these industries, by sector, into 74 industry groups as of
December 31, 2018:

Customer Industry Group

% of Annualized Base Rent and
Interest

Number of Properties

Building Square Footage
(in thousands)

Service:

Restaurants – full service

11.2

%

403

2,719

Restaurants – limited service

5.8

395

1,040

Early childhood education

5.9

185

2,082

Health clubs

5.3

76

2,267

Movie theaters

4.8

38

1,879

Family entertainment

4.0

38

1,290

Automotive repair and maintenance

3.8

139

643

Pet care

3.5

157

1,539

Lumber and construction materials wholesalers

2.9

105

4,375

Medical and dental

2.2

59

618

Behavioral health

1.7

38

603

Career education

1.6

7

584

Elementary and secondary schools

1.4

6

278

Equipment sales and leasing

1.2

19

619

Metal and mineral merchant wholesalers

1.0

20

1,698

Wholesale automobile auction

1.0

6

224

All other service (19 industry groups)

7.5

149

6,008

Total service

64.8

1,840

28,466

Retail:

Furniture

5.5

54

3,224

Farm and ranch supply

4.3

41

3,914

Hunting and fishing

2.2

9

758

Recreational vehicle dealers

1.6

21

954

Used car dealers

1.2

19

229

Home furnishings

0.7

5

691

New car dealers

0.7

8

236

All other retail (9 industry groups)

2.2

51

2,102

Total retail

18.4

208

12,108

Manufacturing:

Metal fabrication

3.9

57

6,894

Plastic and rubber products

2.5

30

3,855

Furniture manufacturing

2.0

12

3,688

Electronics equipment

1.4

10

1,060

Aerospace product and parts

0.8

11

992

Chemical products

0.8

9

820

Automotive parts and accessories

0.8

12

1,533

All other manufacturing (16 industry groups)

4.6

66

5,849

Total manufacturing

16.8

207

24,691

Total

100.0

%

2,255

65,265

STORE Capital Corporation

Investment Portfolio

December 31, 2018

Diversification by Geography

STORE Capital’s portfolio is also highly diversified by geography, as
the Company’s property locations can be found in every state except
Delaware. The following table details the top ten geographical locations
of the properties as of December 31, 2018:

State

% of Annualized Base Rent and
Interest

Number of Properties

Texas

11.6

%

232

Florida

6.2

137

Illinois

6.2

140

Ohio

5.5

134

Georgia

5.3

140

Michigan

4.4

79

California

4.3

40

Tennessee

4.2

100

Arizona

4.0

71

Minnesota

3.7

75

All other (39 states)
[(1)]

44.6

1,107

Total

100.0

%

2,255

(1) Includes one property in Ontario, Canada which represents 0.3% of
annualized base rent and interest.

STORE Capital Corporation

Investment Portfolio

December 31, 2018

Contracts and Expirations

The Company focuses on long-term, triple-net leases with built-in lease
escalators and uses master leases, where appropriate. As of December 31,
2018, 98% of the Company’s investment portfolio was subject to
triple-net leases. Where the Company owns multiple properties leased to
a single customer, 91% of this portion of the investment portfolio was
subject to master leases. Leases and loans representing approximately
16.1% of the annualized base rent and interest will expire in the next
ten years (before 2029). The following table sets forth the schedule of
lease, loan and direct financing receivable expirations as of December
31, 2018:

Year of Lease Expiration or Loan Maturity
[(1)]

% of Annualized Base Rent and
Interest

Number of Properties
[(2)]

2019

0.8

%

18

2020

0.7

13

2021

0.6

7

2022

0.4

7

2023

1.0

26

2024

0.7

15

2025

1.5

23

2026

2.1

54

2027

3.5

64

2028

4.8

79

Thereafter

83.9

1,941

Total

100.0

%

2,247

[(1)]
Expiration year of contracts in place as of December 31,
2018, excluding any tenant renewal option periods.
[(2)]
Excludes eight properties which were vacant and not subject to a lease
as of December 31, 2018.

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